On 1 April 2013, the UK Government introduced a new regime to incentivise companies to base their development and innovation activities in the UK.
The regime, commonly known as ‘Patent Box’, works by providing an additional corporation tax deduction which will effectively mean that the income companies derive from patents is taxed at a reduced rate of 10%.
Her Majesty's Revenue and Customs (HM Revenue and Customs or HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage.... expect that in due course, it will provide a total cash benefit to UK Companies of c. £1 billion per annum. If your company has active patents or exclusive licences or IP which could be patented, then you should be considering the Patent Box.
Making a claim
It is necessary to formally elect into the Patent Box regime but companies have 2 years from the end of the relevant accounting period in which to do so.
The Patent Box legislation is complex and a number of conditions need to be met in order for companies to qualify. Our team includes an experienced IP lawyer and a tax advisor with a wealth of experience in assisting even the very largest companies claim innovation incentives. As such we are ideally placed to be able to quickly assess whether you may be able to benefit from the Patent Box and determine whether electing into the regime will provide a cash benefit for your business.
As a specialist tax advisory firm, we are uniquely placed to provide you with the quality of expertise you need in order to make your Patent Box claim and ensure that all benefits are maximised.
Many companies may have IP which they have previously chosen not to patent. Our team can help you to determine whether the Patent Box will provide sufficient advantage to make taking out patents worthwhile.
In summary, if any of the following are true for your business we would be please to discuss without obligation, the most appropriate way forward in your circumstances:
- You hold or have applied for any patents with the UK IPO or EPO;
- You hold an exclusive licence over a patent;
- You have sold a patent in the last 2 years or plan to do so;
- You have received patent infringement damages in the last 2 years or are expecting to do so.
For more detail please follow these links:
Tel: 0113 261 1706 or 020 8037 1100